McDowell backs stamp duty package by summer

Policy launch:Progressive Democrats leader Michael McDowell has suggested that Fianna Fáil might come up with proposals to deal with stamp duty similar to those being proposed by his own party ahead of the general election.

Answering questions from journalists after the launch of the PD economic policy, Mr McDowell said he shared the view of Minister for Finance Brian Cowen, that suggesting a change in the stamp duty regime without a clear timetable would be destructive to the property market.

"I am operating on the basis that Brian Cowen means what he says, that it would be wrong to prolong uncertainty for any period. I believe there is a willingness across the two parties in Government to address the matter sooner rather than later.

"I speak for the PDs and Fianna Fáil will speak for themselves. I cannot force their hand, but I am absolutely confident that the package should be introduced before the Dáil goes into recess for the summer."

He said the PDs had come up with their proposals last summer, Fine Gael and Labour had come up with their plan and Fianna Fáil might well come up with proposals too before the election.

The Tánaiste emphasised that, "subject to maintaining budgetary prudence", the PDs would commit to abolishing stamp duty for first-time buyers before the Dáil summer recess which begins in June.

However, he refused to say whether acceptance of stamp-duty reforms would be a precondition for entering into another coalition with Fianna Fáil.

"I'm not going round talking about preconditions in relation to this issue. However, we believe that it should be dealt with soon, and that it should be dealt with before the government breaks up for its summer holidays after the general election.

"We believe that is the time to deal with this issue, and that there is a very strong argument for it in terms of revenue and employment, and in terms of fairness and to end uncertainty."

Mr McDowell said uncertainty over stamp duty had to be addressed, but that the Fine Gael/ Labour plan would make matters worse by delaying action.

He described as absurd the Opposition's pledge to reform stamp duty without stating when it would be reformed.

"To ensure maximum market stability, we will implement our reform with immediate effect. There will be no phasing-in period. We will do this through legislation enacted before the new Dáil rises for the 2007 summer recess."